Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A variety of robots have been featured at the National Restaurant Show that can be used for a variety of tasks in restaurants. These robots

image text in transcribed
image text in transcribed
image text in transcribed
A variety of robots have been featured at the National Restaurant Show that can be used for a variety of tasks in restaurants. These robots were introduced at the same time that an ongoing debate ensued in the United States about the merits of a national minimum wage of $11 per hour for every worker. Requirement 1. What would the payback period be on a Burger World robot used for food preparation? (Round your answer to two decimal places.) Requirements 1. What would the payback period be on a Burger World robot used for food preparation? (Round to the nearest two decimal places.) 2. What qualitative factors would Burger World need to consider when deciding whether to purchase robots to replace some of its food preparation workers? 3. Given the payback period, would net present value (NPV) or internal rate of return (IRR) be likely to be useful tools for analyzing this decision? Support your response. A former Burger World USA CEO, Peter French, said that purchasing a $32,000 robotic arm would be cheaper than paying fast-food workers $11 per hour for food preparation tasks like bagging french fries. To test the former CEO's assertion using a hypothetical example, make the following assumptions: a. For the cost of the hourly workers, use a total wage rate of $13 per hour to reflect payroll taxes (the hourly wage rate used here is higher than $11 since payroll taxes can add 15% or more to the hourly wage rate). b. Assume that freight and installation for the robot's initial placement in a Burger World restaurant will be a one-time cost of $5,100. c. The robot will require annual maintenance service. Assume an annual service contract is required that costs 5% of the original robot cost including the original freight/installation. d. Assume that the robot will replace 14 employee hours per day, 360 days per year (the robot will not, at least initially, be as versatile as a person and cannot fully eliminate all food prep workers at this point). e. Electricity and supplies consumed by the robot will be assumed to be $1,400 per year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Lean Audit The 20 Keys To World Class Operations A Health Check For Factory And Office

Authors: Joerg Muenzing

1st Edition

1514817829, 978-1514817827

More Books

Students also viewed these Accounting questions

Question

Describe the five elements of the listening process.

Answered: 1 week ago